Whalesbook
The US International Trade Commission (ITC) has enforced a ban on Ultrahuman, a Bengaluru-based wearables startup, preventing the import and sale of its smart rings in the United States. This action follows a successful patent dispute by Finnish competitor Oura, which claimed Ultrahuman infringed upon patents related to the internal design of its smart rings. With the Presidential review period concluded, the ITC's cease-and-desist orders are now active, specifically prohibiting the sale of Ultrahuman's current Ring AIR model in the US.
Despite the ruling, an Ultrahuman spokesperson stated that Ring AIR will continue to be available through existing US retailers, and all current users will maintain full firmware, software, and warranty support. The company is also seeking clarification regarding smart rings manufactured at its Texas facility.
Ultrahuman confirmed it is developing a new ring design for a US launch as soon as possible. However, sources indicate the company is taking a measured approach to avoid future patent infringement issues and to secure necessary approvals, such as from the US Federal Communications Commission (FCC).
A key challenge for Ultrahuman's re-entry is Oura's '178 patent', which is central to Oura's legal claims and is also being contested by other major smart ring manufacturers like Samsung. The US Patent and Trademark Office is reviewing Oura's '178 patent', with a decision expected in December 2025, which could significantly impact Ultrahuman's situation.
This ban carries substantial financial implications. The US market represented approximately 60% of Ultrahuman's total operating revenue of INR 564.7 crore in FY25, contributing INR 344.2 crore. This over-reliance on the US market presents a significant near-term risk, potentially impacting Ultrahuman's FY26 revenue targets.
In FY25, Ultrahuman achieved significant growth, posting a net profit of INR 71.5 crore and seeing operating revenue surge nearly fivefold to INR 564.7 crore, largely driven by smart ring sales. However, this growth trajectory now faces uncertainty due to the US import ban.
Impact:
This news significantly impacts Ultrahuman's growth prospects and financial performance by restricting its primary market. The company faces potential revenue loss and a critical need to adapt its product strategy and supply chain to mitigate the effects of the ban. The outcome of the patent review in December 2025 will be crucial.
Rating: 7/10
Difficult terms:
ITC: US International Trade Commission. A U.S. government agency responsible for investigating trade disputes.
cease-and-desist orders: Official commands requiring an entity to stop a specified action.
firmware: The basic software that controls a device.
patent dispute: A legal disagreement over the rights to an invention.
intellectual property: Creations of the mind, such as inventions, designs, and brand names, that are protected by law.
infringement: The violation of someone's legal rights, such as using a patented invention without permission.
FCC: Federal Communications Commission. A U.S. government agency that regulates communications.
US Patent and Trademark Office: The U.S. government agency responsible for granting patents and trademarks.
revenue: The total income generated by a company from its business operations.
FY25/FY26: Fiscal Year 2025/2026. The 12-month accounting period used by companies.
SMT: Surface-Mount Technology. A method used to assemble electronic circuits by mounting components directly onto the surface of a printed circuit board.
PCB: Printed Circuit Board. A board that connects electronic components to form an electronic circuit.